Four Hong Kong bus firms seek fare rises of 8.1% to 17.7%
Four franchised bus operators in Hong Kong have applied for fare increases ranging from 8.1% to 17.7%, citing rising fuel and wage costs. The government says it will review the applications carefully and may reduce or reject excessive rises.
Four franchised bus operators in Hong Kong have submitted fare increase applications to the government, with proposed rises ranging from 8.1 per cent to 17.7 per cent. Kowloon Motor Bus (KMB) has applied for a 16 per cent increase, Citybus for 17.7 per cent, Long Win for 8.1 per cent, and New Lantao Bus for 9.8 per cent. The government is currently considering the requests.
A document submitted by the Transport and Logistics Bureau to the Legislative Council shows that franchised buses recorded an average of more than 3.7 million passenger trips per day in 2024 and 2025, a slight increase from about 3.67 million in 2023, but still below pre-pandemic levels. The figures also reflect competition from other public transport modes and structural changes in passenger travel habits.
The operating environment is expected to remain challenging due to competition, rising operating and wage costs, and persistently high oil prices caused by disruptions to fuel supply chains. Operators also need to make long-term capital investments, such as introducing new energy buses and related facilities.
The document noted that, following the outbreak of war in the Middle East this year, the posted price of diesel for vehicles has surged in recent months, adding an extra burden on operators that mainly use diesel and causing significant financial pressure and operational difficulties. Based on data from the four operators, fuel purchase prices in March were about 75 per cent to 134 per cent higher than in January, leading to fuel expenses in March rising by about 85 per cent to 132 per cent compared with January.
As of June this year, provisional estimates of after-tax profits for all franchised operators had fallen sharply year on year. KMB's profit dropped by about 55 per cent, Citybus by about 52 per cent, Long Win by about 31 per cent, and New Lantao Bus by about 129 per cent.
The bureau said that, when assessing operators' financial performance, it would consider maintaining their financial sustainability while also taking into account the public's ability to pay and the impact on passengers. The government will continue to act as a gatekeeper and carefully review the fare increase applications. After considering all factors under the fare adjustment arrangement for franchised buses, if it believes an individual operator's proposed increase is too high, it will reduce the rise or even reject the application.